High Labor Costs Signal a Deeper Problem for a Business

If you think the compensation of your employees is too high, this means that you do not think you are getting enough value for your money.  This indicates serious problems for the business.  Possible root causes include:

• You are a bad manager and are preventing your employees from delivering sufficient value
• You made a bad strategic choice and painted yourself into a corner where there are not enough people in the workforce available for what you need
• This could be a choice of technology, location, industry, ...
• The market has changed and the value of the employees' work has declined, even though the employees continue to perform well

Regardless of the cause, this feeling indicates that significant changes are required.  Left unchecked, your resentment will be perceived by your employees and create more negative consequences.